The integration of Large Language Models into daily tasks relies on context-rich instructions, inevitably exposing sensitive user information. Current privacy-preserving methods typically employ context-agnostic static rules, causing severe utility degradation. However, the specific mechanisms governing how sanitization impacts downstream performance remain largely underexplored. To address this, we conduct a systematic analysis to deconstruct the privacy-utility trade-off, uncovering three underlying mechanisms: (1) Context-Dependent Utility, which first establishes when to sanitize by revealing that data value shifts from critical constraints to dispensable noise based on user intent; (2) Strategic Adaptation, which subsequently determines how to sanitize by dictating that the choice between removal and replacement depends on the task's reliance on factual integrity versus structural coherence; and (3) Combinatorial Interplay, which finally extends the protection scope by demonstrating that attributes form a semantic web of synergistic dependencies or antagonistic redundancies. Guided by these insights, we introduce an intent-driven local protection framework. By distilling a lightweight model Veilmind-4B to drive a dynamic extraction-sanitization-restoration pipeline, our approach reaches a low-leakage privacy point while preserving substantially higher response utility than existing privacy-oriented baselines, advancing the privacy-utility trade-off toward the Pareto frontier.
Large Language Model (LLM) services introduce a fundamental privacy challenge. Sensitive information may be inferred not only from explicit identifiers, such as names or phone numbers, but also from contextual associations among otherwise innocuous spans. Existing sanitizers typically assign privacy or utility signals to individual spans without explicitly modeling pairwise relationships among them. In this paper, we propose PromptGraph, a graph-guided prompt-sanitization approach for privacy-preserving LLM inference. PromptGraph estimates privacy leakage at the span level and utility-relevant contextual dependencies between pairs of spans. It represents each prompt as an attributed graph, in which nodes carry span-level privacy scores and edges encode contextual dependencies needed to preserve utility. The sanitization objective selects a protected span set that maximizes privacy gain while penalizing the loss of contextual dependencies. This formulation explicitly balances privacy and utility when contextual evidence is hidden. Protected spans are sanitized locally, and returned placeholders are restored only after passing local consistency checks. We conduct extensive experiments showing that PromptGraph achieves a more favorable balance between privacy and utility than prompt-privacy baselines.
Contextual Integrity (CI) defines privacy not merely as keeping information hidden, but as governing information flows according to the norms of a given context. As large language models are increasingly deployed as personal agents handling sensitive workflows, adhering to CI becomes critical. However, even frontier models remain unreliable in making disclosure decisions, and existing mitigation strategies often degrade underlying task performance. To overcome this privacy-utility trade-off, we propose SELFCI, a complementary self-distillation framework that decouples information suppression from task resolution. SELFCI jointly optimizes two independent reverse KL divergences over distinct teacher distributions derived from feedback: one encourages preserving task-relevant information for utility, while the other enforces minimal and appropriate disclosure. This complementary formulation induces a Product-of-Experts (PoE) target, aligning the policy with the intersection of capability and privacy requirements. Empirical evaluations demonstrate that SELFCI, without relying on costly external supervision, consistently outperforms competitive baselines such as online reinforcement learning algorithms (e.g., GRPO). These trends further extend to out-of-domain settings involving agentic workflows and accumulated private context, suggesting that SELFCI provides a practical path toward CI alignment.
With the widespread deployment of public large language models (LLMs) such as ChatGPT, protecting user prompt privacy has become an increasingly critical issue. Existing privacy-preserving inference methods sacrifice either utility or efficiency, and often require model-specific modifications that limit their compatibility. In this paper, we propose SharedRequest, a model-agnostic framework for privacy-preserving LLM inference that reformulates privacy protection at the batch level rather than the individual-prompt level. The key idea is to obscure sensitive information by mixing original prompts with noisy variants, while grouping semantically equivalent instructions to amortize the inference cost over a large batch of queries with minimal impact on LLM response quality. This design is independent of the LLM architecture, requiring no access to model parameters or architectural modification. Empirical results demonstrate that SharedRequest achieves over 20% higher utility compared to prior differential privacy baselines, and its shared-prompt mechanism reduces query cost by up to 5× compared to non-batched inference.